Equity Financings Fund Pending Asset Purchase and Expanding Leasehold in Wattenberg Field
SRC Energy closed on a public offering of 51,750,000 shares of its common stock on June 6, 2016. The total net proceeds from the offering were approximately $289.6 million (after deducting underwriters' compensation and estimated expenses). Additionally, SRC closed on a public offering of 22,425,000 shares of its common stock on April 14, 2016. The total net proceeds from the offering were approximately $164.8 million (after deducting underwriters' compensation and estimated expenses). The Company intends to use the net proceeds from these offerings for the pending $505 million Greeley Crescent Acquisition announced May 3, 2016 and for general corporate purposes, which may include continuing to develop its acreage position in the Wattenberg Field in Colorado, funding a portion of its capital expenditure program for the remainder of 2016, or other uses. Upon closing of the Greeley Crescent Acquisition SRC Energy will hold approximately 69,000 net acres in the Wattenberg Field.
SRC Energy has expanded its management team with the additions of Lynn Peterson as CEO & Chairman, James Henderson as Executive Vice President & CFO, Mike Eberhard as COO - Operations, Nick Spence as COO - Development, Tom Birmingham as VP of Exploration, Matt Miller as VP of Land, Cathleen Osborn as General Counsel and Brian Macke as Director of Government Affairs. Concurrent with these management additions SRC Energy moved its corporate headquarters to downtown Denver.
SRC Energy's operated horizontal drilling program began in May 2013 and to date has brought 96 gross horizontal wells into production. As of October, 2016 SRC Energy has two horizontal rigs operating in the basin and plans to expend $130-$150 million in calendar 2016, including $30 million for discretionary seismic and land leasing. The company plans on drilling 55 gross horizontal wells in 2016.
In addition to its operated horizontal wells SRC Energy has participated in over 130 gross horizontal wells in the past three years as a non-operator.